Commission questions companies on geo-blocking

“European citizens face too many barriers to accessing goods and services online across borders,” says European commissioner for competition.

European Commission investigators kicked off a wide-ranging antitrust probe into Europe’s digital sector Thursday, sending the first round of questionnaires to audio-visual companies, POLITICO has learned.

The early focus on this sector confirms the Commission is eager to clamp down on companies that restrict the sales or access of music, video games and other copyrighted content across borders, also known as “geo-blocking.”

One questionnaire received totaled almost 100 pages, according to a person briefed on the document. The questions ranged from basic company information to requests for copies of contracts and data. An estimated 2,000 companies are expected to be questioned throughout the probe.

Margrethe Vestager, the European commissioner for competition, announced the e-commerce sector inquiry on May 6, saying, “European citizens face too many barriers to accessing goods and services online across borders.”

The Commission confirmed it sent out the questionnaires but declined further comment.

Sector inquiries often bring with them the promise of further antitrust scrutiny.

“The advantage of a sector inquiry is that it gives you a much more holistic view of what is going on,” said a lawyer, who requested anonymity because he has clients that will be involved. “That then allows you to decide where to pursue cases, or how to provide guidance.”

The Commission’s preliminary report is expected in spring 2016 with a final verdict that summer.

The probe already has a few pre-cooked targets.

The first relates to restrictions on portability, such as when a subscriber wants to use a streaming music service, for example, while on holiday abroad. Another target will be companies, like pay-TV providers, that prevent their services from being sold in certain countries.

The next wave of questionnaires is expected to go to manufacturers and online retailers that sell everything from shoes to consumer electronics.

The concern there is that manufacturers of high-end brands often limit distributors in order to protect an air of exclusivity. In addition, the Commission will look at whether some online retailers are breaking the EU’s single market law by refusing to sell into certain national markets or redirecting users to country-specific websites.

This story was updated to reflect the Commission’s confirmation that the questionnaires were sent.

Click Here: Maori All Blacks Store